General Builds On A Tradition

Although its future is clouded by rising prices, the traditional detached single-family house is, at least for now, king of the Orlando marketplace, one major builder's experience indicates.

General Homes' newest subdivision, Silver Ridge in Pine Hills west of Orlando, is planned for traditional detached single-family houses.

Silver Ridge is planned for at least 330 homes, said John Christopher, president of the company's Orlando Division. The company has an option on adjacent land that could boost that total to 550 houses, he said.

Silver Ridge is the company's second development in west Orlando. The last few units are now being sold in Horseshoe Bend, a 109-lot project off Powers Drive.

Houston-based General Homes moved into the Orlando market almost two years ago. This fiscal year (ending Oct. 31), the company expects to complete sales of 250 single-family detached houses, said Christopher.

Next year, Christopher is really elevating his sights: He's hoping to close 750 houses. And he expects to reach that goal basically with a traditional detached single-family home product.

But the company is exploring variations on and alternatives to that traditional product.

In a slight departure from its market operations so far, the company is introducing its first zero-lot-line homes in two of its other developments, Lakewood at the Crossings in central Seminole County and Hollowbrook Village in east Seminole County.

In zero-lot-line development, popular with Central Florida builders and buyers since its introduction to the market about five years ago, the house is sited either flush to or near a side or the rear lot line. The siting provides efficient use of small lots for single-family houses. Use of smaller lots helps reduce the builder's cost.

Christopher said the company is introducing a new two-story, zero-lot- line single-family house.

But, he said he has no doubts that subdivisions such as Silver Ridge -- those with traditional single-family detached houses on lots of 6,000 square feet or larger -- still have the greatest appeal to housing consumers.

But as land prices escalate, such projects are difficult to keep in the affordable range.

''We would like to have products in the $50s and $60s, but it's very difficult to do in what we like to offer,'' Christopher said.

Price pressures are rising, enticing developers to multifamily housing construction, he said. Multifamily development is something General Homes will consider as time goes on and prices go up, Christopher said.

In multifamily construction, the developer is able to increase the number of housing units per acre, thereby spreading his land costs among more homes. Christopher said that Orlando is one of the most competitive housing markets in the country, and that benefits the consumer because builders often cut profit margins to make sales. The competition and influx of new builders from around the country also has introduced the latest in housing design to the area, he added.

General Homes currently is building in all quadrants except the south of Orlando area. In addition to Silver Ridge, Lakewood at the Crossings and Hollowbrook Village, the company currently is marketing homes in Alafaya Woods off Alafaya Trail in Oviedo.

Christopher said the company is looking for property to develop south of Orlando.

All four of the current developments offer homes starting in the $70s and $80s. Lakewood at the Crossings has models in the $90s.

Those price levels are a little too high to make the first-time buyer a major segment of the company's buyers, Christopher said. Most of the buyers are new residents and move-up buyers, he said.

The homes being produced in the Orlando market range from about 1,300 square feet to about 2,200 square feet.

General Homes operates its own mortgage finance subsidiary, FGMC Inc. The company has home-building operations in the Tampa Bay area, Texas, Louisiana, Alabama and Arizona in addition to Orlando.